Good news for Indonesia, but investor concerns remain

26th June 2026

Indonesia has avoided an immediate MSCI downgrade from EM status, but its continued inclusion now depends on further progress in market reforms ahead of a November review. The decision is therefore a reprieve rather than a resolution, with ongoing concerns over liquidity, free float, and foreign investor access keeping downgrade risk alive.

We will be holding an online briefing on Wednesday 1st July at 09:00 BST, 16:00 SGT, to discuss the outlook for Asian economies. You can register by clicking here.

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